This Is The Innovative Component Every City Needs

Since the Great Recession, cities across the U.S. have struggled not only to rebound but to grow — and entrepreneurs in those cities have felt the sting as well. In 2016, the National League of Cities released its report “City Fiscal Conditions,” which revealed that beyond recession-related concerns, cities were straining under the weight of aging infrastructures and employee-related costs.

With these challenges endangering the long-term stability of municipal finances, cities are looking for ways to fill the gap. While the NLC found that revenues were increasing in most cities, revenue growth was slowing down just as expenditures were expected to increase. The surge of retiring Baby Boomers is opening up jobs and lowering unemployment in many cities, but it brings with it pension and healthcare obligations. As even the federal government sees its programs strained to meet the needs of the growing retirement class, cities are scrambling to find ways to serve their citizens without going bankrupt.

To make up for increasing costs, cities need to find ways to boost revenues. Most often, it comes down to increasing taxes or attracting new businesses — and one is clearly received better than the other, particularly among entrepreneurs. In order to draw businesses in and keep fueling their growth — and their own — cities need to invest in innovation communities to promote economic development.

How Innovation and Economic Development Go Hand in Hand

The Brookings Institution defines innovation communities as “geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators, and accelerators.” The organization notes that these communities are enabling the spread of innovation beyond Silicon Valley, creating the proximity and knowledge sharing that creativity-fueled businesses need.

By providing neighborhood-style amenities to innovation drivers, cities ensure that economic growth happens in their own backyard. These communities also propel the growth of whole industries, which improves the overall economy and attracts more like-minded people to the environment. It’s a sustainable way to fuel economic growth over the long haul.

Cities all over the world have bought into the idea, with metropolises ranging from Barcelona to Seoul investing in building such communities. Here in the U.S., innovation communities are cropping up everywhere from Buffalo to San Diego. Many “flyover” areas in the Midwest, including St. Louis, are using the method to grow their cities and attract new talent.

St. Louis’ Cortex Innovation Community is part of CIC/Venture Café Global’s six global cities; the 200-acre innovation district is located within the city’s historic Central West End and Forest Park areas, placed in the center of hospitals, cultural attractions, and universities. Travis Sheridan, president of Venture Café Global, says that “Innovation districts are more than just shiny glass and a regional branding effort. The cities that do it well see innovation as a process to improve the human condition and solve some of the biggest challenges. Set smart people free to have an impact.”

How Cities Can Do It Right

Building an innovation center is both easier and harder than it looks. Most cities possess the basic outlets and infrastructure for creating such communities, but some of their default approaches can stop these developments before they get started. Here’s how entrepreneurs can encourage them to get out of their own way to spur growth.

1. Encourage transportation improvements.

Part of the allure of innovation districts is that they bring resources and amenities into close proximity. Difficulty in getting from Point A to Point B — whether it’s through a long commute from one side of the city’s district to the other or nonstop traffic congestion — can put off businesses looking to provide a welcoming environment for staff. Mobility is a core element, so championing improvements to the existing transportation infrastructure — more buses, new routes, subway system upgrades — can make your city look more prepared for new business.

2. Support and expand the existing talent pool.

One advantage big cities have long held over more rural areas is their surplus of talent. In a bigger pool, it’s natural that there would be a broader selection of people with more niche skill sets. That’s why it’s important for innovation communities to be situated in areas close to colleges and universities with specialties businesses may need or where talent sees benefits: a lower cost of living, highly rated schools, etc. As mentioned above, the Cortex Innovation Community is situated in St. Louis, which is No. 2 in the nation for jobs in biotech, pharmaceuticals, and advanced materials. Fortunately, the city’s universities produce nearly 3,000 plant or life science graduates each year.

3. Build on what exists to put innovation on display.

To save money while implementing other improvements that will benefit both innovation communities and themselves, cities should focus on using what they have. The Project for Public Spaces notes that many innovation districts are built in or near low-income areas in need of an injection of funds. By incorporating these neighborhoods’ citizens into their plans and capitalizing on the buildings and historical features already there, cities can improve declining areas while also providing more opportunities for residents and businesses. Oklahoma City has transformed its once-golden Automobile Alley, which had seen decline in the 1970s and 1980s, into sought-after real estate by revitalizing its bevy of old car dealerships.

Cities looking to overcome financial demands may find that an innovation community is just the thing to reverse their fortunes. And the entrepreneurs who live in those cities will find that their resources — and opportunities — increase as a result. By creating an area that caters to cutting-edge thinkers and creatives, cities can fuel growth for entire industries — and themselves.

Serenity Gibbons is a former assistant editor at The Wall Street Journal. The local unit lead for the NAACP in Northern California and a consultant helping to build diverse workforces, Serenity enjoys gathering insights from people who are creating better workplaces and maki...